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Decent Work in Global Supply Chains

Chapter 4.4 Homeworkers in GSC

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In Luxembourg we have very limited cases of home-work due to the type of sectors and industries present, the size of the country (0.5 million inhabitants) and the regulations in place (e.g. Uber is still not legal; an employee can only be employed with contract of determined duration twice - then the contract has to be extended to an indefinitive contract).

A case that could have similar impacts as the home-work is the use of consultants in the tertiary economy (EU institutions, financial sector, e-companies...). When contracting a consultant a company is not required to pay social security, holidays or any other concrete benefit that workers usually benefit from in Luxembourg (e.g. maternity leave, tuition grants...). The legislation has evolved now and according to national law, if a consultant is carrying out the same type of work as a regular employee, that person could request in court to be assimilated to an employee, with all the benefits.

This is a very important piece of legislation in the country although the result is that to continue using consultants, the terms of reference of the contracts are being changed in order to minimize the risks of law suits. Another problem is that consultants may be reluctant to sue because on the long term they may find themselves without a job because the contractor would not renovate the consultancy contract nor the short term contract.

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